The UK economy barely grew in Q3, with GDP expanding just 0.1% qoq, below expectations for 0.2%, reinforcing concerns about stagnation as demand cools. The latest figures show services output rising 0.2% qoq and construction up 0.1%, while the production sector contracted -0.5%, offsetting modest gains elsewhere. Real GDP per head was flat, underscoring the absence of meaningful growth in living standards.
Monthly data painted an even weaker picture. September GDP fell -0.1% mom, missing forecasts for a flat reading, following zero growth in August (revised from +0.1%) and a -0.1% contraction in July. The decline was driven by a -2.0% drop mom in production, as a steep -28.6% collapse in vehicle manufacturing subtracted 0.17 percentage points from overall GDP. In contrast, services and construction both managed modest 0.2% expansions.
